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Occurrence of the construction claims

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Occurrence of the construction claims

5 July 2010 11:57
Would you be able to describe what you consider to be the events that lead to the occurrence of the construction claims and how and why you think it occurred? What do you think could have been done to reduce disputes in construction claims?
OFFLINE

Re: Occurrence of the construction claims

5 July 2010 11:58
The one most important factor leading to Construction Claims is the biased aspect of the Contract Agreement which is more heavily weighed in favour of Contractee (Big Brother).. and the Contractor (Small Brother) is always at the receiving end. While FIDIC has been able toresolve that to a large extent, but issues still remain and also many orgs do not want to adopt FIDIC. Another factor arises from unequal and unpredictable inflationary trends which leads to cost changes normally not correctly governed by escalation clauses. Hence, cost and profit being main component of any Contract, there are claims.
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